MAVERICK LODGE
COMPUTER PROJECT #1 (40 POINTS)
Maverick Lodge is a family-run lodge in Orlando, Florida, situated near Disney World. The lodge went
bankrupt in 1997 and was purchased by Mickey and Minnie Mouse for $250,000. To finance the
purchase, the Mouses took a loan of $100,000 from Small Business Administration at 5.5% annual
interest with a payback period of 15 years. The Mouses also took out a loan of $150,000 from a bank at
9.25% annual interest rate to be paid back over a 30 year period.
Since buying the lodge, the Mouses have often found themselves short of cash for paying the bills. They
have realized a need to develop a plan for managing their cash flow. Develop a spreadsheet that will help
Mouses forecast their monthly cash flow in a 12 month planning horizon. They will use this spreadsheet
to identify the months when they will not have enough money to pay all their bills.
Cash flow forecast for a period shows projected cash receipts and payments and subtracts payment from
receipts. The resulting amount (could be positive or negative) for a given month is added to the beginning
cash for that month to get the ending cash balance for the same month. The ending cash balance for a
given period becomes the beginning cash on hand for the next period. Negative ending cash balance for a
given month means that the Mouses will not have enough money to pay all their bills due at the end of
that month.
The Mouses have determined the lodge's occupancy rate (percentage of the rooms occupied) for various
months of the year. The occupancy rate is highest during the winter months and spring break, when
visitors from all over the world come to Florida to enjoy the beaches and the Disney World.
At daily room rate of $45 per room, the estimated occupancy rate is given below.
Occupancy rate
Jan
65%
Feb
45%
Mar
85%
Apr
25%
May
25%
Jun
35%
Jul
55%
Aug
55%
Sep
15%
Oct
40%
Nov
55%
Dec
67%
The electricity usage is a fixed amount of 40 kWs a day plus 25 kWs per room per day when the room
is occupied. The charges for electric consumption are fixed amount of $45 plus 7 cents per kWh for the
first 3000 kWs and 5 cents per kW for units beyond 3000 kWs. So, if during the month of February the
lodge consumed 7000 kWs of electricity, then the electricity bill for February will be $45 +
(3000*7+4000*5)/100 = $455. On the other hand if the consumption for February was only 2500 kWs,
then the electricity bill for February would be $45 + (2500*7)/100=$220 only.
You will complete the project by doing following Steps I through VIII.
STEP I. Download Lodge.xls from the Internet. It is a template you will use to complete the project.
STEP II. Data that is already known is typed in the Input section. I have done most of the input section.
You will have to complete the input section by typing meaningful labels and numbers about the electricity
usage given in the paragraph above. To do this, you will create five labels for the five numbers (45, 25, 40,
7, 5, and 3000). Type the labels in cells A27 through A32. Type the corresponding six numbers in cells
B27 through B32. Use meaningful labels. Also, type the occupancy rate and the number of days for the
months of September through December.
Maverick Lodge
STEP III. Below the input section is a calculation section. You will type formulas in the calculation
section to estimate the value of items listed in this section. The calculation section should contain
formulas and labels only. All formulas should have cell addresses only. There should be no numbers in
the formulas. However, numbers that are constants and are unlikely to change (like 12 for converting
years into months) are acceptable.
Type formulas to compute electricity usage in kWs (kilowatts), which is a unit of power. Type a formula for
January and then copy it across for February through December. You also have to type a formula to estimate
room rental revenue. It is a product of number of rooms, daily room rate, number of days in the months, and
occupancy rate where occupancy rate is percentage of rooms that get rented during the month. Use IF function to
compute maintenance expenses. Simple formulae is needed for the telephone and water/sewage expenses.
Marketing expense formula uses the IF function. You can save yourself lot of time if you type a formula for
January that can be copied across for February through December. Use the =IF function to estimate the electricity
expenses. Similarly, type formulas to estimate other payments. Property tax is 3% of the property value for the
whole year. Half of it, which is 1.5% of the property value, is paid in June and an equal amount is paid in
December. Use the =PMT function to calculate monthly mortgage payment. The mortage payment formula is
made up of two PMT functions that are summed. In the PMT function, the interest rate used should be the
monthly interest rate and the number of payments would equal number of months in the loan period. Also,
remember ending cash balance for any given month will be the beginning cash for the next month. Display
negative monthly ending cash balances in red. The dollar values should be displayed in currency format and the
percent values should be displayed in percentage format. Include header and footer in the spreadsheet. The header
should have your name and the sheet name. The footer should have the spreadsheet name and the page number.
To create header and footer, click on File, then page set up, then click on the header/footer tab, and then select
your header and the footer.
STEP IV. The spreadsheet should also have a TITLE sheet. In the title sheet, type your name, title of the
spreadsheet, date it was created, and a statement of purpose (what does the spreadsheet do). The sheet with the
input and the output sections should be named Cashflow.
STEP V. Mouses would like to estimate ending monthly cash balances for different values of daily room rates.
Using Scenario manager, create scenarios for the following business situations:
a. When the daily room rate = $50, the occupancy rates are:
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
72% 31% 69% 28% 28% 39% 61% 61% 17% 44% 61% 74%
b. When the daily room rate = $40, the occupancy rates are:
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
59% 50% 82% 23% 23% 32% 50% 50% 14% 36% 50% 60%
In each scenario, display the values of the daily room rate, occupancy rates for each of the twelve months, and the
ending cash balances for each of the twelve months.
Name your scenarios High room rate, Moderate room rate, and Low room rate.
To create scenarios, first name the cells whose values you want to display in the scenarios.
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Maverick Lodge
1. Name Cells In A Workbook
In Microsoft Excel, you can name a single cell or a range of cells to make formulas easier to read and remember.
If you have row and column labels on a worksheet, you can refer to them directly in a formula, or you can use
them as names that represent the associated cells. You can also create a name that represents the same cell or
range of cells on more than one worksheet.
1.1 About labels and names in formulas
Worksheets often have labels at the top of each column and to the left of each row that describe the data within
the worksheet. You can use these labels within formulas when you want to refer to the related data. You can also
create descriptive names that are not labels on the worksheet to represent cells, ranges of cells, formulas, or
constants.
When you create a formula that refers to data in a worksheet, you can use the column and row labels in the
worksheet to refer to the data. For example, if a table contains sales amounts in a column labeled Sales and a row
for a division labeled Support, you can find the sales amount for the Support division by entering the formula
=Support Sales. The space between the labels is the intersection operator, which designates that the formula
should return the value in the cell at the intersection of the row labeled Support and the column labeled Sales.
If your data does not have labels or if you have information stored on one worksheet that you want to use on other
sheets within the same workbook, you can create a name that describes the cell or range. A descriptive name in a
formula can make it easier to understand the purpose of the formula. For example, the formula
=SUM(FirstQuarterSales) might be easier to identify than =SUM(Sales!C20:C30). In this example, the name
FirstQuarterSales represents the range C20:C30 on the worksheet named Sales.
Names are available to any sheet within the workbook. For example, if the name ProjectedSales refers to the
range A20:A30 on the first worksheet in the workbook, you can use the name ProjectedSales on any other sheet in
the same workbook to refer to range A20:A30 on the first worksheet. Names can also be used to represent
formulas or values that do not change (constants). For example, you can use the name SalesTax to represent the
sales tax amount (such as 6.2 percent) applied to sales transactions.
Note: By default, names use absolute cell references.
1.2 Guidelines for naming cells, formulas, and constants in Microsoft Excel
· The first character of a name must be a letter or an underscore character. Remaining characters in the
name can be letters, numbers, periods, and underscore characters.
· Names cannot be the same as a cell reference, such as Z$100 or R1C1.
· Spaces are not allowed. Underscore characters and periods may be used as word separators ¾ for
example, First.Quarter or Sales_Tax.
· A name can contain up to 255 characters.
· Names can contain uppercase and lowercase letters. Microsoft Excel does not distinguish between
uppercase and lowercase characters in names. For example, if you have created the name Sales and then
create another name called SALES in the same workbook, the second name will replace the first one.
1.3 Name a cell or a range of cells
a. Select the cell, range of cells, or nonadjacent selections that you want to name.
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Maverick Lodge
b. Click the Name box at the left end of the formula bar.
c. Type the name for the cells in the naming box, which is just above the column labels in the left corner.
d. Press ENTER.
Note: You cannot name a cell while you are changing the contents of the cell.
1.4 Name cells by using existing row and column labels
a. Select the range you want to name, including the row or column labels.
b. On the Insert menu, point to Name, and then click Create.
c. In the Create names box, designate the location that contains the labels by selecting the Top row, Left
column, Bottom row, or Right column check box.
Note: A name created by using this procedure refers only to the cells that contain values and does not include the
existing row and column labels.
2. Create a scenario
a.
b.
c.
d.
e.
f.
g.
h.
On the Tools menu, click Scenarios.
Click Add.
In the Scenario name box, type a name for the scenario.
In the Changing cells box, enter the references for the cells that you want to change.
Under Protection, select the options you want.
Click OK.
In the Scenario Values dialog box, type the values you want for the changing cells.
To create the scenario, click OK.
To create additional scenarios, click Add, and then repeat steps c-g. When you finish creating scenarios, click OK,
and then click Close in the Scenario Manager dialog box.
3. Create a scenario summary report
a.
b.
c.
d.
On the Tools menu, click Scenarios.
Click Summary.
Click Scenario summary.
In the Result cells box, enter the references for the cells that refer to cells whose values are changed by
the scenarios. Separate multiple references with commas.
STEP VI. Assuming that the input data does not change, which scenario gives the best monthly ending cash
balances to the lodge owners (you can use minimum times you get negative ending cash balances in the whole
year to select the best scenario)? Type your answer in the TITLE sheet of your spreadsheet.
STEP VII. Create two macros to do the following:
1. A macro to print preview the entire spreadsheet in landscape layout.
2. A macro to create a scenario summary report.
The macro buttons should be in the TITLE sheet.
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Maverick Lodge
STEP VIII. Plot a bar graph of Ending cash balance Vs month. Your graph should have a graph title, xaxis title, and y-axis title. Along the x-axis display the months Jan, Feb, Mar etc. The graph should be
stored in a separate sheet named Cashflow_graph.
SUBMIT:
1. A hard copy of the spreadsheet including the TITLE sheet, Cashflow sheet, scenario summary report,
and the Cashflow graph.
2. Your diskette with ONLY the spreadsheet (your diskette should not have any other file on it).
Note:
1 Insert a worksheet in your current spreadsheet by clicking Worksheet on the Insert menu.
2 Rename a worksheet by double-clicking the sheet tab and then type a new name over the current
name.
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MACROS
1. Recording a Macro:
a. On the Tools menu, point to Macro, and then click Record.
b. In the Macro name box, enter a name for the macro. The first character of the macro name must
be a letter. Other characters can be letters, numbers, or underscore characters. Spaces are not
allowed in a macro name; an underscore character works well as a word separator.
c. To run the macro by pressing a keyboard shortcut key, enter a letter in the Shortcut key box.
You can use CTRL+ letter (for lowercase letters) or CTRL+SHIFT+ letter (for uppercase
letters), where letter is any letter key on the keyboard. The shortcut key letter you use cannot be
a number or special character. The shortcut key will override any default Excel shortcut keys
while the workbook that contains the macro is open.
d. In the Store macro in box, click the location where you want to store the macro. If you want a
macro to be available whenever you use Excel, store the macro in the Personal Macro
Workbook in the XLStart folder. To include a description of the macro, type the description in
the Description box.
e. Click OK.
If you select cells while running a macro, the macro will select the same cells regardless of which
cell is first selected because it records absolute cell references. If you want a macro to select cells
regardless of the position of the active cell when you run the macro, set the macro recorder to record
relative cell references. On the Stop Recording toolbar, click Relative Reference. Excel will
continue to record macros with relative references until you quit Excel or until you click Relative
Reference again.
f. Carry out the actions you want to record.
g. On the Stop Recording toolbar, click Stop Recording.
If you want a macro to select a specific cell, perform an action, and then select another cell relative to the
active cell, you can mix the use of relative and absolute references when you record the macro. To record a
macro by using relative references, make sure that Relative Reference is pressed in. To record with
absolute references, make sure Relative Reference is not pressed in.
2. Creating a Macro button:
a. Click on View in the toolbar at the top.
b. Bring the mouse pointer over toolbars and then left click on forms.
c. In the forms toolbar click on the rectangular button (its called button). Take your mouse pointer
(it should look like a plus sign) to where ever you want the button, left click and hold the button
down, drag the mouse to create the box and then release the button on the mouse.
d. When the assign macro window appears, select the macro you want to assign to this button by
left clicking on the macro name and then click on OK.
e. Take your mouse pointer inside the box and left click. Delete the default text in the button by
using the backspace/delete key and type the name you want to give to the box. When done click
somewhere outside the box.
f. Close the forms toolbar.
g. To run the macro simply click on the macro button.